James, a Maryland licensee, is representing both the buyer and the seller in the same transaction. The seller originally agreed in writing to allow dual agency when James took the listing. The buyer also signed a written consent to dual agency before making an offer. James has now received an offer from the buyer that is $15,000 below the listing price. Which of the following actions is James permitted to take as a Maryland dual agent?
Correct Answer
C) Present the offer to the seller and facilitate negotiations without advocating for either party
Under Maryland law, a dual agent owes duties to both the buyer and the seller and must act in a neutral capacity. The dual agent may present offers and facilitate communication but may not advocate for one party over the other, disclose one party's confidential negotiating position, or take actions that benefit one party at the expense of the other. Presenting the offer and facilitating negotiations without advocacy is the correct role. This is governed by Md. Code Ann., Bus. Occ. & Prof. § 17-530.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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